Introduction
At June 30, 2024, Cameroon’s public debt stood at around CFAF 13,070 billion, or 43.3% of GDP. This level remains below the 70% ceiling set by the CEMAC but reflects an annual increase of 4.9%. Most of this debt is external (67.5%), contracted mainly with multilateral creditors such as the World Bank, and bilateral creditors such as China. Repayments in 2024 were significant, reaching 1,058.9 billion FCFA at the end of September, or 65% of the annual target set in the budget Inoussoumbang, 2024. Meanwhile, public spending is increasing to meet development needs, but allocated funds remain under pressure, not least due to high debt servicing costs, which include repayment of principal and interest. The government continues to issue bonds on the financial markets to finance infrastructure projects and clear arrears, but this increases budgetary pressure (Investir au Cameroun, 2023). Although the debt-to-GDP ratio remains sustainable, dependence on external financing exposes the country to currency fluctuations and limits its capacity for productive investment in key development sectors. In this note, we examine the factors influencing debt sustainability in Cameroon, the challenges associated with external debt, and its implications for public investment.
1. Factors Influencing Debt Sustainability
1.1. Debt/GDP ratio
The debt/GDP ratio is a key indicator for analyzing the evolution of a country’s public debt. According to the July 2024 “Note de Conjoncture” from the Caisse Autonome d’Amortissement (CAA), Cameroon’s public debt stands at 13,070 billion FCFA, or 43.3% of GDP. During the 80s and 90s, Cameroon went through a severe economic crisis, with its debt reaching 77% of GDP. Thanks to the Heavily Indebted Poor Countries Initiative (HIPC), the Multilateral Debt Relief Initiative (MDRI), and Structural Adjustment Programs (SAP), this ratio fell to 9.72% of GDP in 2008. Since 2007, public debt management in CEMAC member states has been governed by Regulation N°12/07-UEAC-16-CM-15, defining the principles of debt policy and debt management. Today, although the ratio remains moderate by international standards, it illustrates a debt repayment trajectory that needs to be monitored, particularly in the context of pressure on public finances.
1.2. Capacity to Generate Tax Revenues
Cameroon’s tax administration has made significant progress in revenue mobilization. The 2025 Finance Law forecasts an increase in tax and customs revenues of 9.1% compared with 2024, or CFAF 363.1 billion, thanks to a 7% growth in non-oil GDP and tax reforms. Since 1999, the Value Added Tax (VAT) has replaced the Sales Tax (TCA), and principles such as fairness and tax neutrality now guide tax policy.
Graph 1: Tax revenues as % of GDP, 2022
The tax/GDP ratio in Cameroon¹ in 2022 (14.0%) was 1.9 percentage points lower than the average for 36 African countries in 2024 (16.0%). (Download brief for chart)
Source: OECD
The results show continuous improvement: the tax/GDP ratio has ranged from 10.5% in 2004 to 14.2% in 2018, reaching 14% in 2022. Tax revenues have risen from 855.6 billion FCFA in 2010 to 2,622 billion in 2023, with VAT accounting for 32% and taxes on goods/services 26% in 2022. However, the challenges of broadening the tax base and controlling fraud remain.
Graph 2: The tax/GDP ratio has varied between 10.5% in 2004 and 14.2% in 2018, reaching 14% in 2022 (Download brief for chart)
Source: OECD
2. Vulnerability to external shocks
In the 2025 Finance Act, the Cameroon government forecasts oil revenues of 734.8 billion FCFAThese figures are based on an assumption of low crude oil prices, which means that the public treasury can be relieved of the burden of subsidizing the price of petroleum products, without causing prices to rise. Cameroon’s heavy dependence on the outside world, whether for mining or agricultural products, needs to be emphasized here. Not only are prices set on the financial markets, but their evolution is often influenced by factors other than market supply and demand. Sometimes, prices are affected by economic conditions, geostrategic issues, or climatic conditions. All these factors can disrupt the collection of export revenues. The relationship of monetary and financial cooperation between the six CEMAC member states and France can also be taken into account, albeit to a lesser degree. The persistence of political tensions between the French political players, should it lead to a change of regime at the head of the executive, could pave the way for a rereading, revision or even questioning of the said agreements.
3. Challenges related to external debt
Cameroon’s external debt accounts for 67.5% of total outstanding debtors approximately CFAF 8,247 billion on June 30, 2024, with a significant proportion contracted with multilateral (49.1%) and bilateral (38%) creditors. This structure exposes the country to several major challenges. Dependence on external financing makes it vulnerable to currency fluctuations, with almost 70% of its debt denominated in foreign currencies. This situation increases the risks in the event of a depreciation of the FCFA, raising debt servicing costs. Although average interest rates are relatively low (2.45%), repayment obligations absorb a growing share of budget resources. This pressure limits the ability to finance local projects and reduce poverty. Finally, the diversification of creditors, notably via Eurobonds, exposes the Group to unpredictable market conditions, complicating medium-term debt management.
4. Debt Implications for Public Investment
Cameroon’s public debt, reaching 13,070 billion FCFA in 2024, has a significant impact on public investment, particularly in infrastructure and essential social services. With a high level of debt servicing, FCFA 1,058.9 billion repaid by the end of September 2024, or 65% of the annual target, a significant proportion of budget resources is diverted from productive investment to repaying creditors. The pressure exerted by debt limits the State’s ability to finance strategic projects in key sectors such as education, health, and road infrastructure (Kouam, J.C, 2021). In 2024, for example, development financing needs far exceed available funds, forcing Cameroon to issue new bonds on domestic and foreign financial markets. This situation creates a vicious circle in which borrowing to cover current needs exacerbates future debt. External debt commitments, particularly with bilateral creditors such as China and multilateral creditors such as the World Bank, often require reforms or quid pro quo, reducing budget autonomy. This dynamic hampers the achievement of development objectives and calls for better prioritization of public spending.
Policy Recommendations
Reduce non-concessional loans: In 2024, 60.1% of debt commitments were non-concessional, resulting in high-interest charges.s. It is crucial to prioritize concessional loans to reduce the interest burden.
Control of Restes à Payer (RAP): At the end of September 2024, RAP amounted to FCFA 559.1 billion, representing 1.6% of GDP. Proactive management of these receivables is needed to avoid a continuous increase.
Diversification of financing sources: Cameroon contracted 1079.2 billion FCFA in foreign currency debt in 2024. It is recommended to explore partnerships with international financial institutions to diversify and secure financing.
Regular debt monitoring: Establish an annual debt management report to parliament to ensure greater transparency and accountability in public finance management.
Limiting public debt: Maintain the public debt ratio at 50% of GDP until 2027 to avoid over-indebtedness and ensure financial sustainability.
Conclusion
On June 30, 2024, Cameroon’s public debt stood at around CFAF 13,070 billion, or 43.3% of GDP. This level remains below the 70% ceiling set by the CEMAC but reflects an annual increase of 4.9%. Most of this debt is external (67.5%), contracted mainly with multilateral creditors such as the World Bank, and bilateral creditors such as China. While the debt ratio has been declining over the last 3 years. We recommend regular debt monitoring, diversification of financing sources, and a reduction in concessional loans for sustainable management of Cameroon’s sovereign debt.
List of References
1. Jiongo, C. (2024). Chine, France, Banque Mondiale… : Qui détient la dette extérieure du Cameroun https://www.sikafinance.com/marches/chine-france-banque-mondiale-qui-detient-la-dette-exterieure-du-cameroun_48216
2. Inoussoumbang, D. (2024). Finances publiques – Le Cameroun rembourse 65% de sa dette à fin septembre 2024. https://cameroon-eco-business.info/2024/11/08/finances-publiques-le-cameroun-rembourse-65-de-sa-dette-a-fin-septembre-2024/
3. Investir au Cameroun. (2023). Emprunt obligataire 2023 : le Cameroun ouvre les souscriptions ce 13 juin, après le quitus de la Cosumaf. https://www.investiraucameroun.com/gestion-publique/1306-19486-emprunt-obligataire-2023-le-cameroun-ouvre-les-souscriptions-ce-13-juin-apres-le-quitus-de-la-cosumaf
4. Kouam, J. C. (2021). Repenser la politique budgétaire pour surmonter le problème de la dette au Cameroun. https://nkafu.org/wp-content/uploads/2021/12/lettre-de-politique-fiscale-REPENSER-LA-POLITIQUE-FISCALE-POUR-SURMONTER-LE-PROBLEME-DE-LA-DETTE-AU-CAMEROUN.pdf
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6. Investir au Cameroun. (2024). La dette publique du Cameroun augmente à 13 070 milliards FCFA à fin juin 2024 (+0.8% en glissement trimestriel). https://www.investiraucameroun.com/gestion-publique/2307-21058-la-dette-publique-du-cameroun-augmente-a-13-070-milliards-fcfa-a-fin-juin-2024-0-8-en-glissement-trimestriel
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AUTHORS
Dang Attouh
Research Fellow
&
Haiwang Djamo
Research Analyst
&
Henri Kouam
Economist & Executive Director
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